A contract between a Spanish company and an Indian party should choose its governing law, provide for arbitration seated in a country whose awards India enforces under the New York Convention, and address Indian stamping, FEMA payment rules and withholding tax. Spanish court judgments are not directly enforceable in India because Spain is not a reciprocating territory, which makes the dispute clause the most important part of the contract.
- Document route
- Notario, then apostille from the Colegio Notarial
- Time difference
- India is 3.5 to 4.5 hours ahead of mainland Spain; 4.5 to 5.5 hours ahead of the Canaries
- Core law
- Indian Contract Act 1872
- Foreign awards
- Part II, Arbitration Act 1996
Commercial Contracts from Spain: how it works
We review your Spanish template or the Indian party's draft under the Indian Contract Act 1872. Indian courts do not enforce penalty clauses as such and award reasonable compensation up to the agreed amount, so liquidated damages for late delivery of fabric or components should be a genuine pre-estimate. Exclusivity during the contract is enforceable, but restraints on the Indian party trading after termination generally are not. Quality, inspection and rejection clauses should be practical for Indian factories and ports. Payment terms must match FEMA rules for exports and imports, including timelines for realising export proceeds.
The dispute clause should name the institution, the seat, the language and the number of arbitrators. Singapore is often chosen as a neutral seat for Spain to India contracts, and an award from Singapore is enforceable in India. Indian courts can grant interim relief, such as an order freezing an Indian supplier's bank account, under section 9 of the Arbitration and Conciliation Act even when the seat is abroad, unless the parties exclude it. Contracts used in India must be stamped under the relevant state law, and we advise on executing them so that stamping is straightforward.
What clients in Spain should know
- Spanish-language contracts should be accompanied by an English version stated to prevail, since Indian courts and most arbitrators work in English.
- Royalties and fees for technical services paid from India to Spain attract Indian withholding tax, with the rate set by India's tax treaty with Spain and the recipient's documents.
- For large Indian infrastructure or energy projects, public sector counterparties often impose their own standard terms, so negotiation focuses on the few clauses that remain open.
Step by step from Spain
Video consultation
A call at a time that suits Spain, after we have read your documents.
Documents signed in Spain
Notario, then apostille from the Colegio Notarial
Work in India
Our team files, appears and follows up in India, and shares scans of everything filed.
Result and handover
Certified copies and originals are couriered to you in Spain where needed.
The full guide
This page covers what changes when you are in Spain. For the law, the documents and the step-by-step procedure, read our main page on Commercial Contracts, or see all services for clients in Spain and the Doing Business in India practice area.
Questions from clients in Spain
Can we choose Spanish law for a contract with an Indian supplier?
Yes. Parties to an international commercial contract can choose foreign law, but Indian mandatory rules on stamping, FEMA and similar matters still apply in India.
Is a Madrid-seated award enforceable in India?
Enforcement of foreign awards depends on the seat country being notified by India under the New York Convention. We confirm the position for your chosen seat before you sign.
What if the Indian supplier refuses to sign an arbitration clause?
Indian courts can still hear the dispute, but a Spanish judgment would need a fresh suit in India. We help you weigh the commercial risk and alternatives such as letters of credit.